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BOI says 'has Rs 27.58 cr exposure' to Gupta family based in South Africa

Press Trust of India  |  New Delhi 

State-owned of India today said it has an exposure of Rs 27.58 crore to South Africa-based companies and has a back up of over 100 per cent security against the loan.

"The has sanctioned certain credit facilities to group (of South Africa) in the past as per laid down norms. The present outstanding is Rs 27.58 crore and it is backed by more than 100 per cent security," it said in a clarification sought by exchanges on

of Baroda earlier on February 7 informed that the was investigating allegations regarding compliance lapses at the banks branch there and it is cooperating in the matter.

BoB's response was also in clarifications sought by exchanges regarding a report citing the banks involvement with a particular Indian origin in extending to a political scandal there.

The report referred to the banks dealings with hailed one Gupta family, now settled in and follows information furnished by the bank to exchanges in August 2017 about paying Rs 54.5 million as penalty that was imposed on its branch by the local regulator.

It had also informed about paying Rs 4.23 million fine in without giving details.

As regards the item, the Reserve is investigating the allegations against and the bank is actively cooperating and supporting these investigations, the bank had said in a regulatory filing to the exchanges.

As per some of the matters are sub-judice, including its appeal against a fine of an equivalent of Rs 50 million.

Many of these allegations are on historical transactions and the bank has since then significantly improved the compliance process and these remediation measures would ensure that KYC/AML (Know Your Customer/Anti-Money Laundering) are completed to fullest satisfaction of internal review and to meet the expectations of various regulators, it had said.

stock closed 1.39 per cent down at Rs 99.60 on the today.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, March 08 2018. 23:47 IST